Shell to outstrip BP suggests Exane

Shell to outstrip BP suggests Exane

Investors in BP (LON:BP.) might do better looking at Shell (LON:RDSB) Exane BNP has concluded, which sees potentially some pleasant surprises from restructuring at the Anglo-Dutch giant.
Shares in all of the the European oil majors performed poorly on a relative basis in 2013, something the French broker blames on a lack of confidence in the sector’s ability to improve returns and cashflows.
“The most common pushback on Big Oils – particularly Europeans – is that they are value traps due to their challenged business models and diminishing returns.
“We do agree that the sector faces challenges (production growth, cost pressures). That said, we believe that the common wisdom is yet to reflect the changes that the sector is undergoing – particularly the steady move to reduce the downstream footprint – and the benefit that these changes could have in terms of both financial and share price performance.”
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